3. The following two incidents involve simultaneous shifts in the demand and the supply curves. Analyze the final effects on the equilibrium price and quantity after the changes. Explain your answers.

a. Severe drought at the peak of summer reduces the production of watermelons. With more people consuming the fruit to quench their thirst, the equilibrium quantity is unchanged.

b. The government allocates land to build more houses in the country. At the same time, it relaxes the criteria of citizenship to entice more foreigners to settle down in the country. The price of house increases.